Median one-bedroom rent across the cities we track is $870 in South Dakota versus $1,142 in Tennessee. Overall, South Dakota runs roughly 24% cheaper on rent than Tennessee, its main day-to-day cost driver.
Median household income across tracked cities is $74,714 in South Dakota and $63,204 in Tennessee — about 15% higher in South Dakota. South Dakota has no state income tax and a 4.2% state sales tax; Tennessee has no state income tax and a 7% state sales tax.
State Taxes
Sales Tax
4.2%
7%
+2.8 pp in Tennessee
Income Tax (top rate)
None
None
about equal
Housing (median across tracked cities)
Median 1BR Rent
$870
$1,142
+31% in Tennessee
Median Home Value
$271,400
$270,100
+0% in South Dakota
Income (median across tracked cities)
Median Household Income
$74,714
$63,204
+15% in South Dakota
Climate (median across tracked cities)
Avg Annual Temperature
45.8°F
61.3°F
+15.5°F in Tennessee
South Dakota vs Tennessee — FAQ
- Is it cheaper to live in South Dakota or Tennessee?
- South Dakota is cheaper on rent — its median one-bedroom of $870 runs about 24% below Tennessee's $1,142, based on the cities we track in each state.
- How much more do you need to earn to live in South Dakota than in Tennessee?
- To keep rent near the recommended 30% of gross income, based on median rent across tracked cities, you'd want to earn roughly $35,000 a year in South Dakota versus $46,000 in Tennessee.
- Which has lower taxes, South Dakota or Tennessee?
- South Dakota has no state income tax and a 4.2% state sales tax. Tennessee has no state income tax and a 7% state sales tax.
Housing, income, and climate are medians across the 1/2 cities we track in South Dakota/Tennessee — not population-weighted statewide figures. Taxes are exact state-level rates. Sources: US Census Bureau, ACS 5-Year; NOAA Climate Normals 1981–2010; Tax Foundation 2026.